Joint Circular No. 39-LT/TT stipulates the principle of capital allocation to shipyards based on the annual production volume to determine the level of circulating capital, divided into 70% provided by the State and 30% from the National Bank. Shipyards may borrow funds when raw materials exceed planned quotas.
Scope of application
Shipyards belong to state-owned industrial enterprises.
Key points
- Shipyards base their average annual circulating capital on the annual production volume.
- 70% of circulating capital is provided by the State, while 30% comes from the National Bank. In cases of shortage, the State will provide additional funding; excess must be returned to the budget.
- When raw materials exceed planned quotas, the National Bank will lend the necessary funds for material reserves.
- Products under manufacture are only allowed to be allocated capital for a maximum cycle of 3 months. If production extends beyond 3 months, partial payments for products will be made using construction bank-provided funds.
- The Ministry of Transport and Posts will issue directives to guide implementation.
🌐 Social impact of this document
- Positive impact: Helps shipyards strengthen economic accounting systems and conserve State capital.
- Negative impact: May cause difficulties in managing capital if not strictly adhering to regulations on quota levels and borrowing cycles.
❓ Frequently asked questions
Shipyards are allocated what percentage of circulating capital from the State?
70% of circulating capital is provided by the State, while 30% comes from the National Bank.
Under what circumstances can shipyards borrow from the National Bank?
Shipyards may borrow from the National Bank when raw materials exceed planned quotas as recorded.
For how long can products under manufacture be allocated capital quotas?
Products under manufacture are only allowed to be allocated capital quotas for a maximum cycle of 3 months. If production extends beyond 3 months, partial payments for products will be made using construction bank-provided funds.
What should shipyards do if they have excess circulating capital?
Shipyards must return excess circulating capital to the budget.
On what production volume do shipyards base their circulating capital determination?
Shipyards base their average annual circulating capital on the annual production volume.
Full text
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MINISTRY OF TRANSPORT AND POSTS-MINISTRY OF FINANCE-NATIONAL BANK |
SOCIALIST REPUBLIC OF VIET NAM |
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No.: 39-LT/TT |
Hanoi, October 14, 1959 |
JOINT CIRCULAR
Regulations on the Principles for Capital Allocation to Shipbuilding Workshops
Implementing Decision No. 054-TTg dated February 19, 1959 of the Prime Minister stipulating principles for circulating capital for state-owned enterprises in industry, forestry, agriculture, transportation, and posts; setting standards for circulating capital for state-owned enterprises; and providing for loans from the National Bank within the limits of circulating capital;
Based on Circular No. 3189-LĐ/TL dated July 10, 1959 of the Ministry of Transport and Posts, which classifies shipbuilding workshops 1, 2, 3, and 4 as industrial enterprises;
Considering that after applying the principle of payment for construction projects between construction units and workshops, there have been many instances of capital accumulation, causing difficulties in managing capital at the workshops;
To save state capital while helping the workshops have favorable conditions to consolidate their economic accounting system;
The Joint Ministries of Finance, Transport and Posts, and the National Bank hereby specify the principles for capital allocation to shipbuilding workshops as follows:
1. The determination of circulating capital for shipbuilding workshops must be based on the principle of determining circulating capital for non-seasonal industrial enterprises, which requires basing it on the annual production volume to set the average annual circulating capital.
2. After the circulating capital limit has been reviewed, the State will allocate 30% to the National Bank for lending within the limit; the remaining 70%, after deducting planned debt, if insufficient, the State will provide additional funds to make up the 70%, and if excess, the workshop must return it to the budget.
3. In cases where raw materials imported exceed the limit specified in the plan, the National Bank will lend the necessary capital to the workshop to store materials above the standard according to the short-term loan regulations and measures for state-owned industrial enterprises issued on August 23, 1957.
4. For products under manufacture, only the capital limit for a maximum cycle of three months shall be calculated. In cases where the production cycle exceeds three months, the completion and payment of products in stages shall be based on contracts between construction units and workshops using allocated capital from the Construction Bank.
Based on these principles, the Ministry of Transport and Posts will issue specific guidelines for implementation.
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DEPUTY DIRECTOR GENERAL
Vu Duy Hieu |
MINISTER
Trinh Van Binh |
MINISTER
Nguyen Nhu Quy |
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